BUILDING AN ECONOMY: AMELIORATING INCOME INEQUALITY · DISPARITIES - A TALE OF TWO CITIES • 33%...
Transcript of BUILDING AN ECONOMY: AMELIORATING INCOME INEQUALITY · DISPARITIES - A TALE OF TWO CITIES • 33%...
BUILDING AN ECONOMY: AMELIORATING INCOME INEQUALITY
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The City of Pittsburgh: a transformation of a WWII era hub for steel and manufacturing to a
global innovation city
William Generett, Jr., J.D. -Vice President of Community Engagement, Duquesne University
THE PITTSBURGH EXAMPLE: AN ECONOMY DRIVEN BY “INCLUSIVE INNOVATION”
• Presentation will discuss:• New technology role in transforming region’s economy
• Example: International leader in AI platforms, such as autonomous vehicles
• Issues of equity in new economy
• Efforts to connect new economy with local communities
• Challenges and unintended consequences presented by new economy
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BRIEF HISTORY: PITTSBURGH, THE “STEEL CITY”
• Industrial heyday in post World War II America
• Behind only New York City and Chicago in corporate headquarters employment
• By the 1940’s, due to pollution, Pittsburgh was dark all hours
• Peak population of 677,000 in 1950
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COLLAPSE OF THE MANUFACTURING ECONOMY
• By 1980, 75% of Pittsburgh’s steelmaking capacity vanished
• 130,000 jobs lost, unemployment at 18%
• Population dropped to a low of 296,324 in 2007
• Air pollution was drastically reduced
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A NEW ECONOMY: ADVANCED INDUSTRY CLUSTERS
• Manufacturing, technology and health care• 1,600 technology firms generating $20.7 billion in annual Pittsburgh payroll
• 2 global leaders in their respective industries: Google, Uber
• 115,000 employees in health care
• Metropolitan area home to 68 colleges and universities
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A NEW ECONOMY: POST RECESSION SUCCESS
• Advanced industries have grown 8.4% since end of recession
• Double the growth rate of private-sector
• 103,000 jobs in automation and industrial machinery/metals/metal processing
• Post recession job growth in advanced manufacturing reached 11.3%
• Productivity 7% higher in manufacturing industries than national average
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A NEW ECONOMY: ACADEMIC & RESEARCH STRENGTH
• Metro university R&D ranks 5th among top cities
• Academic research expenditures in medical sciences is 350% higher than national average
• CMU’s computer science & computer engineering programs rank 1st and 2nd respectively nataionally
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A NEW ECONOMY: THE STARTUP ECOSYSTEM
• 2014 – 2016: 10 times number of Small Business Innovation Research/Small Business Technology Transfer (SBIR/STTR) recipients
• 2016: UPMC Enterprise invested over $130 million in new tech and startups
• Pittsburgh region ranked 5th in number of deals per capita
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NEW ECONOMY FAILURE: RACIAL DISPARITIES - A TALE OF TWO CITIES
• 33% of African Americans in Pittsburgh live in poverty
• 15% of White, non-Hispanics in Pittsburgh live in poverty
• Median household income disparities based on race:
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PITTSBURGH’S SHARED INCLUSIVE ECONOMIC DEVELOPMENT GOALS
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FOSTERING A COOPERATIVE ENVIRONMENT: ECOSYSTEM SUCCESS
• Make the case
• All sectors must be engaged
• Form a public private partnership to govern the work
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CONNECTING THE NEW ECONOMY TO THE COMMUNITY
LESSONS LEARNED IN PITTSBURGH
• What Pittsburgh learned in attempting to build a Mondragon inspired co-operative ecosystem:• Do not build co-operatives in silos
• Build co-operatives from the “bottom up”, not the “top down”
• Choose the right type of co-operative business
• Co-operatives are a very important tool to fight income equality
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THANK YOU!
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